Here’s a few tax write-offs that most entrepreneurs don’t take advantage of…
– You can rent your house out to your business (if you own your house) up to 14 days a year. This is called the “Augusta Rule” You get a write-off for your business, and the income you make from it is also tax free (I do this multiple times a year when I hold masterminds at my house)
– You can go on a tropical vacation for your yearly board member meeting. If you have a C-corp you’re supposed to have a meeting every year with board members. And this meeting can be anywhere. So if you want to go Costa Rica, sip mojitos in the sun, and enjoy yourself while writing your trip off, you can.
– You can put your kids on your payroll. I have a few friends who do this. And their kids payments just go into a Roth IRA that will grow over time for the kids. Smart move.
– You can have multiple companies paying each other marketing fees to lower your tax liability. I don’t know the intricacies of this, but it’s a strategy my tax advisors have been using for years. I used to just have one LLC. But now that I have multiple s-corps and c-corps we’re able to make payments to other companies to lower my tax burden (BTW if you simply have an LLC and you’re making good money, you’re leaving a lot of dough on the table)
– If you’re a partner in an LLC, your partnership stake can be your s-corp, and not you as an individual. This is a simple thing to do, but it can save you a bunch on federal employment taxes because you basically have your s-corp pay you a salary, and the rest goes to you as profits from the s-corp. This means you don’t pay the employment taxes on those profits. So a big savings for you.
– If you purchase a car/truck that’s over 6000 lbs you can write off a big chunk of it. This vehicle needs to be for business use. And the amount you can write off varies. But if you’re looking at something big like a Range Rover, it fits the bill for this write off (mine did).
– You can get a big R&D tax credit if you have physical products or software. I mentioned this one on Tuesday so I won’t elaborate on it, but if you’re selling any kind of physical products or software (and theyre not white labeled) you’re probably eligible for an R&D tax credit.
– You can write off your medical expenses within your C-corp. This one I’m a bit hazy on the details, but my tax guys do it for me every year. Luckily for me I have not had many medical expenses so it’s a small write off. But the option is there to write off medical expenses within your c-corp.
So there ya go…
A few tax deductions that are available that most entrepreneurs aren’t taking advantage of.
One thing I’ll say is this…
In my experience, most CPA’s don’t know about any of this.
What they understand is adding up your expenses and your income and telling you how much money you owe the government.
And like I said earlier this week, that’s what the “naive entrepreneur” does.
That’s what I did for many years.
Simply because I did not know any better.
But once I started making more money…
And learning from other highly successful entrepreneurs, I realized they take their tax strategy seriously.
Why?
Cause it saves them a ton of money.
For example…
I’ve referred probably 6-7 people to my tax strategist (Jeff) that I know have signed on with him as clients…
One of these guys was a 7-figure earning copywriter, who was able to save close to $220,000 this year on his taxes with the advice Jeff gave him.
Another one I referred owns a very large supplement company that’s doing 9-figures right now. Jeff was able to find them $2.9 million in tax savings that they weren’t getting from their current CPA.
Another guy I referred who does very well on high-ticket sales, said after his first call with Jeff they had found close to $200,000 in tax savings for him.
Think about that.
These are all legal deductions that these people should have been taking.
But their CPA’s simply didn’t know any better.
That’s why if you’re making good money…
You absolutely need a tax strategist in your corner.
Not just a regular ole’ CPA.
I learned this hard way…
Cause I just assumed all CPA’s knew the same stuff.
Not true.
In fact it’s just like copywriting…
In the copywriting world there’s low level writers you hire off of Upwork for $10 an hour…
And then there’s the Gary Bencivenga’s of the world.
Same thing happens with CPA’s.
They don’t all have the same skill sets.
Some are simply “order takers”…
While others are actually able to set your business up in a way that saves you a ton in taxes.
That’s what a good tax strategist does.
I got referred to my current one (Jeff) from my buddy Dan Roitman.
And I’m super glad he introduced us.
Cause Jeff has been able to find a bunch of “leaks” in my tax strategy that my old advisors didn’t see.
So he’s saving me money already.
I know a lot of people are interested in talking to Jeff. So I’ll give you the full rundown on him tomorrow.
And if you want me to connect you to him, I’ll do that as well.
So I’ll leave all that for tomorrow.
Hope this email gave ya some good ideas…
Take care,
– Justin
If you want to hear more from Justin, he has a private email list for top marketers, copywriters and business owners. To apply to be on the email list simply click the button below that says “apply now”.
